Citadel Securities Maintains an 'Add' on Hyatt Hotels (H); Buys 24 Hotels from LodgeWorks for $802MM - Strategically Interesting
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Price: $180.98 --0%
Rating Summary:
18 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
18 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Citadel Securities maintains an 'Add' on Hyatt Hotels (NYSE: H), PT $48.
Citadel analyst says, "We were a bit surprised late last week when Hyatt announced it had acquired 24 hotels (3,527 rooms) from LodgeWorks for $802MM (~$227k/key), or 16x 2012E EBITDA ($50MM). On the surface, this transaction struck us as richly priced...We believe it would be easy to argue that, on the surface, Hyatt overpaid for these assets by ~$150MM. However, that is before adding back the LT value of the brand growth and management contracts. This would have a slight negative impact to our PT - not a huge deal given that Hyatt's market capitalization approaches $7B. However, as we believe there is some upside to the transaction, we will wait to update our model until we hear more details from management on its 2Q11 earnings conference call on August 2nd."
For more ratings news on Hyatt Hotels click here and for the rating history of Hyatt Hotels click here.
Shares of Hyatt Hotels closed at $39.73 yesterday.
Citadel analyst says, "We were a bit surprised late last week when Hyatt announced it had acquired 24 hotels (3,527 rooms) from LodgeWorks for $802MM (~$227k/key), or 16x 2012E EBITDA ($50MM). On the surface, this transaction struck us as richly priced...We believe it would be easy to argue that, on the surface, Hyatt overpaid for these assets by ~$150MM. However, that is before adding back the LT value of the brand growth and management contracts. This would have a slight negative impact to our PT - not a huge deal given that Hyatt's market capitalization approaches $7B. However, as we believe there is some upside to the transaction, we will wait to update our model until we hear more details from management on its 2Q11 earnings conference call on August 2nd."
For more ratings news on Hyatt Hotels click here and for the rating history of Hyatt Hotels click here.
Shares of Hyatt Hotels closed at $39.73 yesterday.
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